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MODAMI ANNOUNCES SUCCESSFUL LAUNCH OF UP-CHARGE PROGRAM

 BOCA RATON, Fla., Nov. 12 /PRNewswire/ -- Modami Services (NASDAQ: MDMI) headquartered here, said today it has successfully launched a test marketing program that makes available soft serve machines to operators of fast-food and convenience stores in the Houston area, when they agree to purchase the company's Fresh 'n Easy(TM) Instant Yogurt. Modami said that it had approximately 56 Houston-area locations under contract, with 17 units already installed, and that an additional 165 retailers in the Houston area have said they expect to join the Fresh 'n Easy(TM) up-charge program over the next three to six months.
 The company said participating retailers in the up-charge program are able to obtain its instant yogurt, for which Modami has patent protection, and the soft serve machine, for a combined cost of approximately 22 cents per serving -- more than 30 percent below the cost of traditional frozen yogurt products. In addition they receive hands-on merchandising support from Modami's Houston-based US Trade and Marketing subsidiary, co-op advertising and signage.
 According to Paul Kravitz, Modami president, "We're saying that soft- serve yogurt is no longer a novelty item that requires a stand-alone location and an up-front investment of many thousands of dollars. In Houston today, Modami is offering mainstream retailers an entirely new product that is easy to store because it's a dry product, easy to use, and 100 percent natural -- and they can get into the program with a total up front cost of $600.
 According to Jerry Worley, a franchise owner and board member of the Blimpie's Co-Op for the Houston Region, "The test program began in my location more than two months ago. I liked the idea of a dry product that didn't need freezer space or defrosting time, so I could make only the amount I need on the day I need it. But I was skeptical about how large an impact it could have on my bottom line. Modami representatives both from Houston and from headquarters in Boca Raton spent many hours in my store, talking with customers and trying several merchandising formats before settling upon a 'total' approach that is probably the most exciting thing I have seen in all my years of retailing. My lunch sandwich business has increased by 20 percent and the profits from the yogurt itself almost pays for the rent for this store."
 Kravitz said that UST&M, Modami's Houston-based subsidiary, is preparing to expand the up-charge program to El Paso, Dallas and Phoenix, Ariz., once the test marketing period of approximately 45 days has been completed. He said that a parallel program for grocery chains that involves the installation of specially designed kiosks with self- serve yogurt, yogurt candies and Italian ices, is under development and expected to be launched soon.
 Kravitz characterized Modami's profit margins from the up-charge program as "quite substantial" adding, "We expect the up-charge program to be a significant contributor to cash flow, as the company launches its entire line of food and diet products beginning February 1994.
 Modami Services is the developer and marketer of a patented food technology that enables the company to dehydrate and rehydrate any natural food without losing any nutrients, or any fiber. Its current product line consists of Fresh 'n Easy(TM) Yogurt, Tomato Flakes, Yogurt Candies, Shakes and Italian Ices.
 -0- 11/12/93 R
 /CONTACT: Paul Kravitz, president of Modami Services, 407-995-0605; or Ira Weingarten of Equity Communications, 805-897-1880, for Modami Services/
 (MDMI)


CO: Modami Services, Inc. ST: Florida IN: FOD SU:

OP -- FL003R -- 3873 11/12/93 16:30 EST
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Publication:PR Newswire
Date:Nov 12, 1993
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